Restaurant and Food Service Blog

Seth Godin just posted a great entry in his blog about the power of copyrighting and words. So much can be said of a brand in a few simple words. Here Pete’s Coffee tries to get the message across, but falls short. So much of what many companies try to convey today simply gets mired in trying to get across to customers.

Pssst. The secret’s out at KFC. Well, sort of. Colonel Harland Sanders’ handwritten recipe of 11 herbs and spices was to be removed Tuesday from safekeeping at KFC’s corporate offices for the first time in decades. The temporary relocation is allowing KFC to revamp security around a yellowing sheet of paper that contains one of the country’s most famous recipes.

Shrouded in secrecy, you would think that the folks at YUM! were part of the Da Vinci Code conspiracy. Apparently there are only 2 top execs at KFC who really know the entire recipe and a third who knows the secret combination to the lock to get into the safe. Even all of the suppliers who formulate the recipe are not in the know. There are several manufacturers who only make parts of the recipe and are sworn to a secrecy agreement.

I tried to find out if the famous Todd Wilbur, author of Top Secret Recipe Books, doesn’t have a “clone” recipe online – but does have one of the famous Big Mac!

With so much word of this on the internet and KFC themselves releasing this in a press release, you really have to wonder how secret is this recipe anyway? This recipes has make billions of dollars for the company and they want to hold it close to their chest, but in the same conversation they let the whole world know that it will be temporarily out and be relocated. Sounds more like PR spin then anything else.

I thought that parent company YUM! could be more creative then this.

read more | digg story

David Farkas of Chain Leader in his blog had an interesting take on the loyalty of the gay community when it comes to certain brands. 

What do Cracker Barrel, Starbucks and Dunkin’ Donuts have in common with Wal-Mart, Levi’s and American Airlines?

Answer: Gay people either like or despise these companies. A recent Prime Access/PlanetOut.com survey shows that gays, lesbian and transgendered consumers put Starbucks at the top of their list of “gay-friendly” businesses while Cracker Barrel and Dunkin Donuts (along with Wal-Mart) are at the very bottom. 

Interesting to find out that the gay community finds Dunkin Donuts at the bottom of being “gay-friendly”. Not sure what it is about the Canton based company that makes them not “gay-friendly” and Starbucks a place were gay and lesbians can hang out.

By the way, I am not gay…not that there is anything wrong with that!!!!

LOS ANGELES (AdAge.com) — “Howard Schultz insists he’s returning Starbucks to its roots, but he’s doing it with mass-marketing tactics once anathema to the original brand. The company is estimated to have nearly doubled its marketing spending to $100 million, and last week it began an aggressive coupon program unlike anything in its history, raising questions about its turnaround strategy.”As a former Starbucks partner, I am shocked to see that the company is going the route of couponing. During my time at the Siren, it was always about the quality of the product and there was never a reason to have to discount the value of a quality cup of joe. But it looks like a desperation move by Schultz and the gang there.What I find more interesting is My Starbucks website – an interactive blog site where customers can voice their opinions to the company. In a telling statement of the state of the company and its interaction with customers, it looks like customers want something “free” from the company for being loyal to the brand. Seems to make sense. Buy 10 cups and the 11th one is free. Seems like a no brainer. But for so long the company did not have to do these types of tactics.In the end, it seems clear that the companies that can be most nimble and in touch with its consumer base will win the battle.read more | digg story

Last month I delivered my 2008 Predictions for the Restaurant Industry. I want to share that piece with my readers. Please let me know your thoughts.This is the first annual Predictions for the Restaurant Industry presented by Orrick Nepomuceno, CPC. 2008 will prove to be a tough time for the US economy that will have a huge impact on the state of the Restaurant Industry.

1. Sluggish Sales Growth Will Continue For 2008. The restaurant industry overall will see very conservative growth across all segments (casual, quick casual, quick service and fine dining). According to NRA estimations, the industry will see only a 0.9% sales growth for 2008. Although more Americans are spending a higher percentage of their disposable income allocated for food then ever before, most households will be less likely to eat out several times a week. Most likely, they will eat at home and save instead. Even if the President’s economic stimulus package does pass and Americans see a few extra spending dollars, most economists believe that most households are barely making ends meet. Bottom Line: Americans will have more disposable income in their wallets, but will probably consider saving instead of spending.
2. Increased Energy And Wholesale Food Costs Will Have A Negative Effect. With the price fluctuations in crude oil, lower and mid level-income households will feel a tighter pinch on spending disposable income on dining out as they will be inevitably hit hard with increased gasoline prices. Studies have shown a direct correlation to slumping restaurant sales and the increase in gasoline prices. Additionally, 2007 saw a nearly 8% increase in wholesale products. Much of this cost was eventually passed on to the consumer in higher menu prices. Most estimations see wholesale food costs to remain high for 2008 as well. Bottom Line: Households will get a double hit with transportation and dining expenses.
3. Technology Will Continue To Advance Even More Rapidly Than In Previous Years. Companies will look to the Internet for connecting with customers in more ways than before. Traditional print and television mediums will drive consumers to websites for offerings and coupons. Online ordering will become more robust as mobile handheld devices such as the iPhone have web browsing capabilities similar to their desktop versions. Also, a “Facebook” and “MySpace” type of social networking will become more prevalent with company sites where consumers can create online profiles. Bottom Line: The restaurant industry has a long way to go before it catches up with other industries in terms of technology.
4. Recruitment And Retention Will Be Of A Lesser Concern. The restaurant industry has always been a labor-intensive industry with recruitment and retention being typically the biggest concern among most hiring managers. But for 2008, according to NRA predictions, the industry will see a relatively small increase (0.9%) in the employment growth rate. Coupled with a slowing economy, job creation will be less than in 2007. Thus, with less demand for employees in 2008, many hiring authorities may substitute their concern for human resources to other cost cutting measures. Bottom Line: Many operators’ concerns will be moving towards cost reduction in order to stay competitive.
5. Bullish On Coffee Bars. One segment, although relatively small, the Snack & Non-Alcoholic Beverage Bars (Coffee and Dessert bars) will see higher than normal growth compared to other segments. In 2007, coffee bar sales outpaced beyond the rest of the crowd. Bottom Line: Companies will look to find niche segments where there is little or no saturation.
6. Global Cuisine. At a recent conference of Executive Chefs across America, most commented on smaller sized portions and introduction of ingredients from different parts of the world. Ethnic flavors found roots in the US with inspiration from Latin America, the Mediterranean, the Middle East and Southeast Asia. Many chefs also commented on utilizing more local produce, sustainable seafood and grass fed beef and poultry. Bottom Line: American diners are becoming more savvy and demanding more exotic flavors when they go out.
7. Fat Is Not In. Americans are demanding healthier foods as we wage the war on fat. Look for menu offerings at current concepts to reflect this trend, but also expect new totally concepts to emerge and fully embrace a menu offering with healthier choices – a la Seasons 52. With obesity in America on the verge of becoming an epidemic and local municipalities looking to stiff arm the industry into removing trans-fats and other harmful foods, the restaurant industry as a whole needs to get ahead of the curve and take a stand on obesity. Bottom Line: Expect the Federal Government, not local municipalities, to continue campaigns to reduce the consumption of trans-fats.